Class 2 and 4 (self-employed)

Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

2019/20:

Class 2

(£)

Flat rate per week

3.00

Small Profits Threshold (per annum)

6,365

2018/19:

Class 2

(£)

Flat rate per week

2.95

Small Profits Threshold (per annum)

6,205

No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.

Class 4

2019/20:

Annual profits

%

Up to £8,632

Nil

£8,632.01 - £50,000

9

Over £50,000

2

2018/19:

Annual profits

%

Up to £8,424

Nil

£8,424.01 - £46,350

9

Over £46,350

2

Class 3

A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.

Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.